Just installing new version on top of old won’t work. You have to:
1. Uninstall the vmware tools by command:
# vmware-uninstall-tools.pl
2. Restart comptuer by
# shutdown -r now
3. Mount the VMWare tools iso, extract it & run the installer
# mount /dev/cdrom3 /mnt/cdrom
# ./vmware-install.pl
4. Accept all the default values, choose the screen resolution which suits you. If your screen res is not in the list than select last one which has > sign.
5. Reconfigure your xserver by
# dpkg-reconfigure xserver-xorg
select no for the framebuffer
You can always reconfigure vmware tools by:
# vmware-config-tools.pl
Adjust the screen resolution from the Desktop settings.